Eurodon keen to shake up Russia’s duck market

Russian agricultural holding company Eurodon is harbouring ambitions to become the largest manufacturer of duck meat in Russia, with plans to shake up both domestic and international markets.

According to reports, the company has established its first exports of duck by-products, so it seems that a rapid increase in domestic consumption is not the only target for company’s development.

First industrial project​

Eurodon told GlobalMeatNews​ that despite the traditional use of duck meat in Russian cuisine, industrial production of duck meat in commercial quantities has never taken place in the country before. Average consumption of duck meat in the country now stands at 1kg per capita or nearly 143,000 tonnes (t) per year.

Eurodon’s press office told GlobalMeatNews​ that, last year, the company’s duck production facilities reached full capacity, at 24,000t per year. In the first half of 2016, production volumes amounted to 15,000t. The facilities include breeder flocks, incubators, poultry houses, a feed mill with a capacity of 300,000t of compound feed per year, a meat processing plant and logistics facilities.

Quoting Eurodon CEO Vadim Vaneev, the press office said that, in terms of marketing, there were positive signs, as consumption was growing in line with production capacity – by nearly 15% per year.

Although duck meat is still a niche product, it was traditionally consumed mainly during the cold season and in the form of whole ducks, but these stereotypes are now being erased, Vaneev suggested.

According to official company information, the investment level for the first stage of the duck project amounted to RUB7.2 billion (US$115), while, for the second stage, the company will require an additional RUB12bn (US$192m). These funds will enable Eurodon to boost production capacity to 70,000t, making it the largest manufacturer of this type of meat in Europe.

Future product stocks​

This year, Eurodon has begun to export duck by-products to Asia, supplying 70t of duck feet and 6t of tongues on a monthly basis indirectly to China, through Russian intermediaries. Eurodon is hoping to expand the range by supplying duck heads, stomachs, wings and feathers.

Speaking earlier, Vaneev stated that, this year, the company had no problems with exports, since all its products could be sold in Russia. However, he suggested that, next year, the manufacturer could be left with large stocks of product, as a number of new players are due to enter the market.

He said that Eurodon was now in talks with several European countries with a view to establishing exports. In Asia, he said, Russia had no direct agreements on the export of duck meat to China, so direct supplies were impossible. As a result, deliveries to Vietnam seemed more attractive.

Speaking to GlobalMeatNews​ Vaneev stated that Eurodon was in no hurry with exports, as the strategy was to create a competitive Russian product with export potential. He disclosed that Eurodon had received many trading offers and was in the process of evaluating these.